Many families across the country struggle to pay their mortgage, whether because of unemployment or because the payment is simply too high. If you find that you’re having problems paying your mortgage (or even just getting the payments in on time), don’t give up hope: there are still plenty of options for you.
Although it’s not always an ideal solution, a part-time job can help close the gap between what you owe and what you can pay. For families that only need a little extra money each month, a part-time job may offer a comfortable solution. You may even be able to work from home or sell something you make from home.
Home loan modifications can be an excellent way to save money on your monthly mortgage payments. If you’ve had an illness in the family or lost your job, many lenders will work with you to modify the terms of your loan. Home loan modifications take a variety of forms, from a temporary payment reduction to lowering your rate. However, you’ll usually have to make up for it later, either by paying more or having a rate increase at a later date. To be considered for home loan modifications, you’ll need to see your lender as soon as you know you’re going to have trouble making your mortgage payments – they’ll be a lot more understanding and you’ll have more options.
One way to lower your mortgage payment is to refinance at a lower interest rate. You’ll need great credit and must meet all the criteria of your original loan. If you decide to refinance, make sure you’re getting an interest rate that’s at least 2% lower than your current rate. You might also consider refinancing over a longer term – you’ll pay more interest in the long run, but it might lower your monthly payments.
Just because you can’t afford your mortgage payments doesn’t automatically mean you’ll lose your home. You have plenty of options, particularly if you work with your lender as soon as you realize you’re going to have trouble.
